Understanding and getting paid what you're worth in today's sizzling job market takes knowing your market, knowing your potential employer and knowing yourself, say employment experts. It also takes being your own advocate, while gauging what is reasonable to negotiate for the skills you are bringing to the table.

Candidates should do their homework, experts suggest, to get up to speed on compensation trends in their field or industry as well as for the job level they are considering. There is information available, particularly in SEC records, on the Internet. In many instances, job seekers can study the prospectus of hiring companies or of competitor companies of similar size. "The candidates are more savvy today than I have even seen them. They're aware of what they want and ready to work for a great contract," says Steven Maxwell, an associate at Russell Reynolds Associates, an executive recruiting firm in Boston.

Depending on the level of the position they are seeking, many candidates won't receive an individual employment contract in the United States, says to Maria Schaefer, program director in executive services for META Group in Stamford, Connecticut. The conditions of their job are more likely to be spelled out in a letter of understanding. Mark E. Schreiber, a partner in the labor department of Palmer & Dodge in Boston, says candidates should try to get a written agreement even if it is in letter form, spelling out salary, bonuses, stock options and other benefits.

While employment decisions can be emotional, Schaefer stresses that candidates should remember that they are talking about a business relationship and they should not be nervous in talking about the financial aspect of a position. "What individuals want to be conveying is, 'You, Mr. New Company, are hiring me for what I can bring to a team. I am a high-value employee,' " Schaefer says. She suggests that candidates always try to get a company to put forth their best offer before they start making demands.

In terms of compensation, experts say, salary levels vary widely with industry, skill level and even location of the company. Salary, they note, is only one component to be considered. If they are in a hot job market, candidates should be looking for a bonus in their job negotiations, according to Schaefer. Sign-on bonuses have become increasingly common, she notes, and can range from $5,000 to $10,000 or 2 percent of yearly salary for more senior positions in hot job markets such as information technology. Performance bonuses, Schaefer says, are more variable and are generally based on a combination of the company's overall performance as well as the individual's performances.

Stock options are the hottest negotiating point in today's job market, particularly in high tech fields, according to experts. Schreiber says candidates should make a strong case for stock options, stressing that they don't cost the company anything. The details of how those options become vested are a complex part of negotiations about which Schreiber says candidates may want to seek advice of a lawyer or at least become familiar with industry standards. They'll need to know, he says, the vesting schedule for stock options as well as provisions for what employees can keep if they leave the company or if the company is acquired.

Schaefer notes that candidates need to compare the number of options they are being offered to the total number in the option pool. Andy Updegrove at Lucash, Gesmer and Updegrove in Boston, which represents high tech startups, cautions that candidates shouldn't be too caught up in the number of zeros behind their option offer without first considering how many shares will be authorized. As stock options have become more sought after by employees, companies have increased the number of shares they offer. Two to three years ago, he says, a typical initial public offering was 5 million authorized shares compared to 25 million shares today. Size up the company's track record and the target date for the company's IPO as well, experts stress, to put the option offer in perspective.

Severance pay is another benefit that should be on the negotiation list. Experts agree that six months to one year is a reasonable severance pay expectation in this era of corporate agility. Severance should be defined in writing as well.